## EU Fines Chipmaker Qualcomm €244 Million for Anti-Competitive Practices ### Background The European Commission has fined Qualcomm, a leading chipmaker, €244 million for abusing its dominant position in the market for 3G baseband chipsets, which are used in mobile phones. The Commission found that Qualcomm engaged in predatory pricing and other anti-competitive practices to maintain its market share and prevent rivals from entering the market. ### Predatory Pricing Qualcomm was found to have engaged in predatory pricing by selling its chipsets at a price below cost to certain customers, such as Apple. This made it difficult for rivals to compete with Qualcomm, as they could not match its low prices. ### Exclusive Deals Qualcomm also entered into exclusive deals with some manufacturers, such as Apple, which prevented them from using chipsets from other suppliers. This gave Qualcomm a significant advantage over its rivals and made it difficult for them to enter the market. ### Limited Access to Technology Furthermore, Qualcomm restricted access to its technology to rivals, making it difficult for them to develop competing chipsets. This gave Qualcomm an unfair advantage and limited innovation in the market. ### Impact on Competition The Commission found that Qualcomm's anti-competitive practices had a significant impact on competition in the market for 3G baseband chipsets. It prevented rivals from entering or expanding in the market, leading to higher prices and less choice for consumers. ### Consequences The €244 million fine is a significant penalty and sends a strong message that the Commission will not tolerate anti-competitive behavior. It also demonstrates the Commission's commitment to promoting fair competition and protecting consumers from the harmful effects of cartels and other anti-competitive practices.
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